Fuel Oil & LP Gas Dealers
Companies in this industry sell fuel oil and liquefied petroleum (LP) gas. Major companies include AmeriGas Partners, Ferrellgas Partners, and Star Group, all based in the US, as well as Japan's Mitsui & Co, Ultrapar Participações of Brazil, and Dutch firm SHV Holdings.
Top global markets for fuel oil consumption include the Asia/Pacific region and the Middle East, according to the 2018 BP Statistical Review of World Energy. World consumption of fuel oil fell by 2% between 2016 and 2017.
The US fuel oil and LP gas dealer (fuel dealer) industry includes about 8,200 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $25 billion. Volatility in the price of crude oil impacts revenue for fuel oil dealers.
Residential, commercial, industrial, and agricultural heating needs drive demand. The profitability of individual companies depends on efficient operations, low-cost purchasing, and competitive pricing. Large companies have advantages in purchasing, finance, and distribution. Small companies can compete effectively by serving a local market, offering unique products, or providing special services. Fuel dealers compete with suppliers of other energy sources, including electricity and natural gas. The US fuel dealer industry is fragmented: the top 50 companies account for about 40% of sales.
Record high heating oil prices in recent years and financial incentives from utility companies have caused many consumers to convert their home heating systems to natural gas. About 90% of fuel oil dealers have reported losing customers to natural gas conversions, according to Fuel Oil News. While the average price per gallon of residential heating oil has fallen steeply from its peak in 2008, making price less of a issue, environmental concerns are driving some consumers to migrate to biofuel-based heating oil and ultra-low-sulfur diesel.
Products, Operations & Technology
Fuel oil and LP gas each account for about 40% of US fuel dealers' sales; automotive fuels account for another 10%. Fuel oil includes various grades (mostly
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms